“When I was young, I was poor. But after decades of hard work, I am no longer young.” The quip about “The greatest cause of death is birth” aside, we’re all going to die. The question is, “How?” It takes a while for statistics to catch up, but in 2019 the biggest killers of Americans were heart disease, cancer, and being poor. “There were at least 180,000 poverty-related deaths in 2019, new research estimates, surpassing deaths from causes like homicide and drug overdoses.” Unclean air, water, lack of access to good health care are listed. But we, in the residential lending industry, are in a good place to help better people’s housing situation… every day! Loan officers are in a very good position to do so, and today is the last day for them to comment on NMLS Modernization. (Today’s podcast can be found here and this week’s is sponsored by Richey May, a recognized leader in providing specialized advisory, audit, tax, technology and other services to the mortgage industry for almost four decades. To experience how Richey May can help you transform your mortgage business, visit richeymay.com. Today’s has an interview with Argyle’s John Hardesty on real-time payroll and employment verification technology.)

Lender and Broker Software and Services

“Who really drives innovation in the servicing industry? The servicer, of course. But to run their business in an innovative way, they need disruptive technologies. That means a platform that offers several key features and functionalities that will allow them to meet the needs of their internal staff and their borrower in ways their competitors cannot. The platform should be user-friendly, intuitive, highly scalable, and able to handle large volumes of data and transactions without slowing down or crashing while being customizable. MortgageFlex took what it learned from four decades of LOS development experience and built it all into its new servicing platform, offering the industry’s only truly seamless end-to-end platform. Find out more today by contacting John McCrea at MortgageFlex, or by visiting us here.”

MAXEX is doing the same thing for non-QM it has done for jumbo, DSCR and agency eligible conforming: increasing access to trusted liquidity by bringing standardization and efficiency to a critical high-growth market segment. Connect to multiple buyers of quality expanded credit loans including alt doc, asset depletion, interest only and DSCR. Trade with multiple buyers on a flow, forward or bulk basis via a single contract and MAXEX’s central clearinghouse. Learn more by visiting the company’s website or schedule time to meet with MAXEX at MBA Secondary or the IMN Non-QM and Non-Agency Forum.

Lenders must adopt an omnichannel communication strategy to stand out in a competitive mortgage marketplace. This can be easily done if you have the right tools on your side! Surefire℠ CRM and Mortgage Marketing Engine by Black Knight gives users full control over every marketing and communication channel from day one. Now, Surefire is empowering lenders with the perfect combination of automated marketing features in one affordable, single price “Power Pack” add-on. The offering bundles Surefire Power Calls, Power Messaging and Power Videos into a plug-and-play value pack for lenders and brokers. For hands-free marketing that packs a punch from day one, no further than Surefire Power Pack from Black Knight.

“Foundation Mortgage Corporation, one of the fastest growing NonQM Lenders, has secured financing and secondary market execution to open up a non-Delegated channel. We anticipate having the channel up June 1, 2023. Elliot Salzman, EVP, Chief Credit Officer stated, ‘Foundation already has a huge wholesale following based on our commonsense underwriting and the ability to adapt to any situation and willing to make exceptions when warranted. This is just the next iteration in our plans to becoming a full service NonQM lender.’ For inquiries please contact Dean Ayres, Senior Vice President.”

What’s one of the biggest cybersecurity risks in mortgage lending? Loan origination, and specifically forms, because they invite fraud. Forms bring in leads and with them, personal information. On face value, those leads may seem legitimate, but what if they’re not? What if they’re encoded with malware? Whenever you collect data, you need to verify it. So first ask: Are you collecting it or is a third party doing it, and can you trust the legitimacy of each lead? Then ask: Who's holding onto that data? If it’s you, you’re liable for protecting it. Safeguard client data and your business by making an investment in cybersecurity before a breach. According to IBM’s 2022 Cost of a Data Breach Report, phishing was the costliest initial attack vector at $4.91 million. Learn how to identify and mitigate the inherent risks in processes like loan origination. Talk to Richey May’s cybersecurity experts today.

The appraisal world is undergoing the most significant transformation in years with the GSE appraisal modernization initiatives. Technology, robust data and analytics, and automation have significantly improved property valuations' accuracy, efficiency, and transparency. Consolidated Analytics is at the forefront of appraisal modernization. CA is ready to support Fannie Mae’s Value Acceptance + Data Collection and is approved by Freddie Mac to support ACE+ PDR. CA’s experienced team allows them to be at the forefront of the industry, adapting to these market changes to deliver a wide range of valuation products covering everything from data collection to traditional and hybrid appraisals. These advancements benefit lenders, appraisers, and borrowers, ultimately contributing to a healthier and more sustainable real estate market. Contact Chris McLain, 352.333.3033, at Consolidated Analytics to see how our valuation team can support you in these new initiatives.

STRATMOR on Credit Union and Bank Lending

Lenders, are you a bank or credit union looking for ways to optimize your mortgage division to stand out in today’s environment? You should consider attending STRATMOR Group’s upcoming Executive Forum, “Mortgage Strategies for Banks and Credit Unions” on June 13 and 15. These two, virtual 90-minute sessions are designed for mortgage bankers in the roles of Head of Mortgage/CEO, Mortgage COO or Head of Ops, Head of Sales, and/or Head of Marketing and will focus on developing strategies for the challenges and opportunities banks and credit unions face today. Visit the event page for details on the topics that will be covered and to register.

Capital Markets

If we, as an industry, originate $1.8 trillion in residential loans this year, what is that per day? $7.2 billion. I mention this because mortgage traders are seeing much less volume than that, as a certain amount of production is going into portfolios, isn’t being hedged, or is non-Agency production. But turning back to Agency production, one trader wrote Friday, “Supply closed at $2.2bn yesterday, dragging the 5-day average down to $2.4bn.” Why the volume? “The light day of supply is obviously attributed to the move in rates, as pipelines shorted into yesterday’s rally. Originators will have updated rate sheets to show more competitive prices into the weekend, so barring another drastic rate move, could see a heavier day of supply, in the $2.5 – $2.8bn range.”

The trader went on. “TBA hedging volume has yet to uptick notably since we have entered the home buying season. Originators seem to think a roughly 10 percent increase in hedging needs, purely from seasonality, is a fair assumption over April numbers during the busy season (May – July). Pricing vol and macro uncertainty has certainly deterred customers to this point, but that is poised to change. Rate moves can amplify or nullify this effect.”

Mortgage-backed securities and U.S. Treasuries ended last week by dropping in price, giving back their gains from the previous several days. Inflation continues its slow retreat from multi-decade highs, though remains firmly above the Fed’s 2 percent target. Consumer prices rose 0.4 percent in April and were up 4.9 percent over the prior twelve months, which was in line with market expectations. Energy prices spiked in April following OPEC+’s surprise decision to cut oil production.

Elsewhere, prices of food consumed at home eased 0.2 percent while food away from home rose 0.4 percent. In general, services inflation has been stickier than goods. Shelter costs, which are less current than the other components of CPI, continue to add upwards pressure on inflation data. They were 8 percent higher than one year ago. The preliminary May release of consumer sentiment data was significantly lower than April’s 63.5 and below all 54 forecasts at 57.7. Consumer outlook for the unemployment rate was the worst since 2009.

This week’s economic calendar includes updates on Retail Sales, Industrial Production, Housing Starts and Building Permits, and Existing Home Sales. Today’s calendar has already kicked off with Empire manufacturing for May (-31.8, an unexpectedly huge decline). Next up are several Fed speakers, including Atlanta President Bostic, Minneapolis President Kashkari, and Richmond President Barkin. We begin the week with Agency MBS prices slightly worse from Friday and the 10-year yielding 3.50 after closing last week at 3.46 percent; the 2-year is back up to 3.98.

I, and an estimated couple thousand industry execs, head up Manhattan soon. Adam Quinones, Founder of dataQollab and former Head of Mortgages at Refinitiv, has some advice for anyone going to New York for the MBA’s National Secondary. (Part 1 of 5.) “Midtown Manhattan is a giant grid. Getting lost is pretty hard. Odd Avenues run North to South. Even Avenues run South to North. Even Streets run West to East. Odd Streets run East to West. As you walk West, the Avenues go up. As you walk South, the Street numbers get lower.

Loan Officer Jobs

“University Lending Group/University Bank has one of the Nation’s Top lending suite of tools and loan manufacturing processes. Originating in today’s challenging market, the “How” and the “What” should be most important to you and your customers. With the increase of recent mortgage company closures, M&A, Realtors and Borrowers require more confidence in their Loan Officer’s ability to deliver accurately and on time. University Lending Group offers the confidence and proven reliability of a Bank-owned organization with the flexibility of an independent mortgage banker. With a wide product selection, from Conventional, Government, Construction, Jumbo, to Bank Portfolio products, and everything in between, you can’t afford not to explore your options. While other organizations are retreating from the proverbial mortgage ‘Battlefield,’ University Lending Group continues to grow. Let us help you! For a confidential conversation, Please call Rory Ballard, at 586-484-0500. ‘ULG is an Equal Opportunity/Affirmative Action Employer.’”

Movement Mortgage offers Mortgages That Mean More. As the leading Impact Lender in the US, Movement gives away a significant percent of its profits to lift up communities and create brighter futures. With every home closing, Movement opens the door to more. Want to learn more about Impact Lending and see what Movement’s all about? Join a virtual discovery call with members of the company’s leadership team next Thursday, May 18 from 3-4 pm ET. Participation is anonymous!

"Your attitude determines your altitude.” Direct Mortgage Loans has the right attitude: attract great talent and provide exceptional customer service! Jan Ozga joined Direct Mortgage Loans as Chief Strategy Officer and will serve on their Executive Leadership Team. Jan’s role will consist of responsibilities inclusive of assessment and implementation of strategic initiatives; growth-based special projects; recruiting and sourcing candidates for employment; assessment and recommendations regarding branch architecture; deal structuring; acting as a brand ambassador for the company; full member of the Executive Leadership Team; and advisor to the CEO and President. Learn why Jan made the move to Direct Mortgage Loans.

“The top 3 reasons mortgage sales professionals change companies: 1) Poor service levels compromising relationships with clients and referral partners. 2) Inadequate sales and marketing support. 3) No chance for advancement or opportunity to take their business to the next level. The top 3 reasons mortgage sales professionals join radius: 1) Nimble and proactive IMB that’s right sized to meet today’s changing demands. 2) Takes the guesswork out of marketing with their marketing team. 3) Allows you to your own mortgage dream team or take advantage of theirs. At radius financial group, the focus is on YOU! Empowering you to build and run your business, your way. We give you the tools to help you strengthen relationships and you can build your own mortgage dream team or take advantage of ours. Either way, you’re an actual shareholder in everyone’s success! For confidential inquires please contact Carla Herrera and visit us.”

“At Fairway Independent Mortgage Corporation, customer service is a way of life. #FairwayNation mortgage loan officers are dedicated to finding great rates and loan options for our customers while offering some of the fastest turn times in the industry. Our goal is to act as a trusted mortgage advisor, providing highly personalized service and helping you through every step of the loan process, from application to closing and beyond.”

Atlanta-based Highland Mortgage continues to grow and is searching for branches and loan officers throughout the Southeast, Delaware, Arizona, and Colorado. Contact Mickey Schilling, CMB®, its VP of National Sales. Now in its fourth year, Fannie Mae-approved Highland Mortgage is well-positioned to expand its footprint nationwide under Mickey’s guidance. Here are Mickey’s top reasons why Highland is the right destination for you.